Annual Report 2013–14

Financial statements

Notes to the financial statements

Note 1: Summary of Significant Accounting Policies

1.1 Objectives of the Australian Electoral Commission

The Australian Electoral Commission (AEC) is an independent statutory body established under the Commonwealth Electoral Act 1918 for the purpose of conducting elections and referendums, maintaining the electoral roll, providing electoral information, education programmes and related services and managing funding and disclosure in relation to political parties.

While the AEC is predominantly funded by Parliamentary appropriations, revenue is also received for the provision of electoral services to other organisations.

The AEC is structured under one outcome to meet the following three programmes:

Programme 1: Voter entitlement for Australians and support for electoral events and redistributions through maintaining an accurate and up-to-date electoral roll.

Programme 2: Access to an impartial and independent electoral system for Australians through the provision of electoral services.

Programme 3: Informed Australians through the provision of information services on electoral matters.

The continued existence of the AEC in its present form and with its present programmes is dependent on government policy and on continuing funding by Parliament for the AEC’s administration and programmes. AEC activities contributing toward this outcome are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the AEC in its own right. Administered activities involve the management or oversight by the AEC, on behalf of the Government, of items controlled or incurred by the Government.

Administered items managed for the Government by the AEC are primarily the payment of Election Public Funding and collection of Electoral Fees and Fines under the operations of Programme 2 (Impartial and independent electoral services).

AEC’s Appropriation Receivable Programme Funding includes an amount of $24.314m related to activities that the AEC did not undertake in the 2013–14 financial year and $2.181m of movements related to prior year activities that the AEC did not undertake. Equity injections include an amount of $3.989m related to activities that the AEC did not undertake. The Department of Finance has quarantined all of these funds. These amounts will be legally reduced under Appropriation Acts in the 2014–15 financial year. (Refer to Note 6B)

The Australian Government continues to have regard to developments in case law, including the High Court’s most recent decision on Commonwealth expenditure in Williams v Commonwealth (2014) HCA 23, as they contribute to the larger body of law relevant to the development of Commonwealth programmes. In accordance with its general practice, the Government will continue to monitor and assess risk and decide on any appropriate actions to respond to risks of expenditure not being consistent with constitutional or other legal requirements.

1.2 Basis of Preparation of the Financial Statements

The financial statements are general purpose financial statements and are required by section 49 of the Financial Management and Accountability Act 1997.

The financial statements have been prepared in accordance with:

  1. a. Finance Minister’s Orders (FMOs) for reporting periods ending on or after 1 July 2011; and
  2. b. Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.

Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in the statement of financial position when and only when it is probable that future economic benefits will flow to the AEC or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executor contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the schedule of commitments or the schedule of contingencies.

Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the Statement of Comprehensive Income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

1.3 Significant Accounting Judgements and Estimates

No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

1.4 New Australian Accounting Standards

Adoption of New Australian Accounting Standard Requirements

No accounting standard has been adopted earlier than the application date as stated in the standard. Of the new standards, amendments to standards and interpretations issued prior to the sign-off date, where applicable to the current reporting period had no financial impact on the AEC, although changes to AASB 101 Presentation of Financial Statements have changed the presentation of the AEC’s Financial Statements.

Future Australian Accounting Standard Requirements

The new standards, amendments to standards and interpretations issued by the Australian Accounting Standards Board prior to the sign-off date, are not expected to have a financial impact on the AEC for future reporting periods.

1.5 Revenue

Revenue from the sale of goods is recognised when:

  1. the risks and rewards of ownership have been transferred to the buyer;
  2. the AEC retains no managerial involvement or effective control over the goods;
  3. the revenue and transaction costs incurred can be reliably measured; and
  4. it is probable that the economic benefits associated with the transaction will flow to the AEC.

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:

  1. the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
  2. the probable economic benefits associated with the transaction will flow to the AEC.

The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

The AEC receives funding for programmes under a Record of Understanding with the Department of Foreign Affairs and Trade. The nature of funding falls within two broad categories:

  • Specific services. These include training, hosting of international visitors or representation on a specific forum or council. Funding for specific services are recognised as revenue to the extent of costs incurred to date.
  • Generic services. This covers the cost of maintaining a presence in a country to provide advice and support to the Government of a specific nation in relation to electoral matters. Funding for generic services is recognised as revenue when the AEC is entitled to receive programme funding.

Revenue from Government

Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when the AEC gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.

AEC’s Revenue from Government includes an amount of $24.314m related to activities that the AEC did not undertake. The Department of Finance has quarantined these funds for a return to government. These amounts will be legally reduced under Appropriation Acts in the 2014–15 financial year. (Refer to Note 4D and Note 27).

Parental Leave Payments Scheme

Amounts received under the Parental Leave Payments Scheme by the AEC not yet paid to employees are presented gross as cash and a liability (payable). The total amount received under this scheme is disclosed as a footnote to the Note 8A: Suppliers.

Resources Received Free of Charge

Resources received free of charge are recognised as either revenue or gains depending on their nature when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government entity as a consequence of a restructuring of administrative arrangements (Refer to Note 1.7).

1.6 Gains

Resources Received Free of Charge

Resources received free of charge are recognised as either revenue or gains depending on their nature when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government entity as a consequence of a restructuring of administrative arrangements (Refer to Note 1.7).

Sale of Assets

Gains from disposal of assets are recognised when control of the asset has passed to the buyer.

1.7 Transactions with the Government as Owner

Equity Injections

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and from 1 July 2010, Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.

AEC’s Equity injection – Appropriations includes an amount of $3.989m related to activities that the AEC did not undertake and will be returned to government. The Department of Finance has quarantined these funds. These amounts will be legally reduced under Appropriation Acts in the 2014–15 financial year. (Refer to Statement of Changes in Equity)

Restructuring of Administrative Arrangements

Net assets received from or relinquished to another Government entity under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.

Other Distributions to Owners

The FMOs require that distributions to owners be debited to contributed equity unless it is in the nature of a dividend. In 2013–14, the entity also returned $0.400 million under the Statute Stocktake (Appropriations) Act 2013.

$2.181m of amounts recognised as Appropriation Revenue in 2012–13 finanical year has been identified as relating to activities that the AEC did not undertake. Department of Finance has quarantined all of these funds however this reduction has not been recognised as a Distribution to Owners. These amounts will be legally reduced under Appropriation Acts in the 2014–15 financial year. (Refer to Note 6B)

1.8 Employee Benefits

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits due within twelve months of the end of reporting period are measured at their nominal amounts.

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

Leave

The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the AEC is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the AEC’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave has been determined by reference to the work of an actuary as at 30 June 2014. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Annual leave is disclosed as current as there is a legal right to the payment, irrespective of whether the payment is expected to be paid within 12 months or not.

Separation and Redundancy

Provision is made for separation and redundancy benefit payments. The AEC recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.

Superannuation

AEC staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or have exercised SuperChoice and nominated their own fund.

The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and notes.

The AEC makes employer contributions to the employees’ superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. The AEC accounts for the contributions as if they were contributions to defined contribution plans.

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final eight working days of the year.

Temporary staff members of the AEC have their superannuation paid into their nominated fund or if no fund is nominated, the Australian Government Employees Superannuation Trust (AGEST) fund is used.

1.9 Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.

The AEC did not have any finance leases as at 30 June 2014.

Payments for operating leases with fixed increases are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.

Lease incentives taking the form of ‘free’ leasehold improvements and rent holidays are recognised as an asset and a liability. These assets are reduced across the life of the lease by allocating lease payments between rental expense and reduction of the liability.

1.10 Cash

Cash is recognised at its nominal amount. Cash and cash equivalents includes notes and coins held and any deposits in bank accounts held at call with a bank or financial institution.

1.11 Financial Assets

Loans and Receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Impairment of Financial Assets

Financial assets are assessed for impairment at the end of each reporting period.

Financial assets held at amortised cost – if there is objective evidence that an impairment loss has been incurred for loans and receivables or held to maturity investments held at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.

Effective Interest Method

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.

Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit or loss.

1.12 Financial Liabilities

Other Financial Liabilities

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

1.13 Contingent Liabilities and Contingent Assets

Contingent liabilities and contingent assets are not recognised in the statement of financial position but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

1.14 Acquisition of Assets

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition.

1.15 Property, Plant and Equipment

Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the statement of financial position, except for purchases costing less than $2,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘makegood’ provisions in property leases taken up by the AEC where there exists an obligation to restore the property to its original condition. These costs are included in the value of the AEC’s leasehold improvements with a corresponding provision for restoration recognised.

Revaluations

Fair values for each class of asset are determined as shown below:

Revaluations
Asset Class Fair value measured at

Leasehold Improvements

Depreciated Optimised Replacement Cost

Property, Plant & Equipment – Other

Depreciated Optimised Replacement Cost

Property, Plant & Equipment – forklifts catering equipment and generators

Market Prices

Following initial recognition at cost, property plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Full valuations are conducted every five years and an internal assessment is carried out in the other years to ensure that the carrying amounts of assets did not differ materially from the assets fair values as at the reporting date. The regularity of independent valuations depended upon the volatility of movements in market values for the relevant assets. Valuations are carried out by an independent qualified valuer.

Revaluation adjustments were made on a class basis. Any revaluation increment was credited to equity under the heading of asset revaluation surplus except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets were recognised directly in the surplus/deficit except to the extent that they reversed a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset was restated to the revalued amount.

Depreciation

Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the AEC using, in all cases, the straight-line method of depreciation.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

Depreciation
  2014 2013

Leasehold improvements

Lesser of lease term/useful life

Lesser of lease term/useful life

Plant and Equipment

5 to 10 years

5 to 10 years

IT Equipment

3 to 5 years

3 to 5 years

Impairment

All assets were assessed for impairment at 30 June 2014. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the AEC were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

1.16 Intangibles

The AEC’s intangibles comprise purchased software with an initial cost greater than $5 000 and internally developed software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the AEC’s software are between 1 to 10 years (2012–13: 1 to 10 years).

All software assets were assessed for indications of impairment as at 30 June 2014.

1.17 Inventories

Inventories held for distribution are valued at cost, adjusted for any loss of service potential. The items recognised as inventory have been narrowed to include only cardboard equipment and declaration envelopes.

1.18 Taxation/Competitive Neutrality

The AEC is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Revenues, expenses and assets are recognised net of GST except:

  1. where the amount of GST incurred is not recoverable from the Australian Taxation Office; and
  2. for receivables and payables.

1.19 Fair Value Measurement

The entity deems transfers between levels of the fair value hierarchy to have occurred at the end of the reporting period.

1.20 Reporting of Administered Activities

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the administered schedules and related notes.

Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.

Administered Cash Transfers to and from the Official Public Account

Revenue collected by the AEC for use by the Government rather than the AEC is administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by the AEC on behalf of the Government and reported as such in the schedule of administered cash flows and in the administered reconciliation schedule.

Revenue

All administered revenues are revenues relating to ordinary activities performed by the AEC on behalf of the Australian Government. As such, administered appropriations are not revenues of the individual entity that oversees distribution or expenditure of the funds as directed.

Note 2: Events After the Reporting Period

Departmental

There are no events after the reporting date that will materially affect the financial statements.

Administered

There are no events after the reporting date that will materially affect the financial statements.

Note 3: Expenses

Note 3A: Employee Benefits
  2014 $’000 2013 $’000
Note 3A: Employee Benefits    
Wages and salaries 126 962 58 710
Superannuation:    
Defined contribution plans 7 860 6 740
Defined benefit plans 6 075 3 975
Leave and other entitlements 5 863 5 704
Separation and redundancies 2 576 1 803
Total employee benefits 149 336 76 932
Note 3B: Suppliers
  2014 $’000 2013 $’000
Note 3B: Suppliers    
Goods and services    
Consultants 1 427 941
Contractors 10 023 4 553
Travel 5 975 3 765
IT services 18 874 10 675
Inventory 4 469 114
Venue hire 7 763 104
Mail and Freight 16 820 5 141
Advertising 21 749 2 262
Printing 8 575 1 533
Legal Costs 2 447 401
Other 13 211 8 517
Total goods and services 111 333 38 006
Goods supplied in connection with    
Related parties 1 314 214
External parties 55 781 15 884
Total goods supplied 57 095 16 098
Services rendered in connection with    
Related parties 18 887 5 646
External parties 35 351 16 262
Total services rendered 54 238 21 908
Total goods and services 111 333 38 006
Other supplier expenses    
Operating lease rentals – related entities:    
Minimum lease payments 2 062 1 797
Operating lease rentals – external parties:    
Minimum lease payments 9 481 9 301
Workers compensation expenses 1 951 676
Total other supplier expenses 13 494 11 774
Total supplier expenses 124 827 49 780
Note 3C: Depreciation and Amortisation
  2014 $’000 2013 $’000
Note 3C: Depreciation and Amortisation    
Depreciation:    
Property, plant and equipment 3 130 1 969
Leasehold Improvements 3 226 3 670
Total depreciation 6 356 5 639
Amortisation:    
Intangibles 3 033 2 765
Total amortisation 3 033 2 765
Total depreciation and amortisation 9 389 8 404
Note 3D: Write-Down and Impairment of Assets
  2014 $’000 2013 $’000
Note 3D: Write-Down and Impairment of Assets    
Asset write-downs and impairments from:    
Impairment of receivables 1 1
Total write-down and impairment of assets 1 1
Note 3E: Losses from Asset Disposals
  2014 $’000 2013 $’000
Note 3E: Losses from Asset Disposals    
Property, plant and equipment:    
Proceeds (25)
Carrying value of assets disposed 19 89
Computer Software    
Carrying value of assets disposed 57
Total losses from asset disposals 19 121

Note 4: Income

Note 4A: Sale of Goods and Rendering of Services
  2014 $’000 2013 $’000
Own-source revenue    
Note 4A: Sale of Goods and Rendering of Services    
Goods supplied in connection with    
Related parties 88 72
External parties 12 046 11 762
Total goods supplied 12 134 11 834
Services rendered in connection with    
Related parties 4 346 5 078
External parties 1 926 869
Total services rendered 6 272 5 947
Total goods and services 18 406 17 781
Note 4B: Other Revenue
  2014 $’000 2013 $’000
Note 4B: Other Revenue    
Other 100 1 074
Resources received free of charge 86 84
Total other revenue 186 1 158
Gains    
Note 4C: Other Gains
  2014 $’000 2013 $’000
Gains    
Note 4C: Other Gains    
Change in fair value through profit and loss:    
Restoration obligations (39) (93)
Total other gains (39) (93)
Revenue from government    
Note 4D: Revenue from Government
  2014 $’000 2013 $’000
Note 4D: Revenue from Government    
Appropriations:    
Departmental appropriation 267 066 105 257
Departmental special appropriations 9 000 9 000
Total revenue from Government 276 066 114 257

Note: AEC’s Revenue from Government includes an amount of $24.314m related to activities that the AEC did not undertake. The Department of Finance has quarantined these funds. These amounts will be legally reduced under Appropriation Acts in the 2014–15 financial year.

Departmental Appropriation for 2012–13 includes an amount of $3.795m which was appropriated through Appropriation Act 1 (2013–14). Of this amount $2.108m was subsequently quarantined in 2013–14 and will be reduced under Appropriation Acts in the 2014–15 financial year.

Note 5: Fair Value Measurements

The following tables provide an analysis of assets and liabilities that are measured at fair value.

The different levels of the fair value hierarchy are defined below.

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at measurement date.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability.

Note 5A: Fair Value Measurements

Fair value measurements at the end of the reporting period by hierarchy for assets and liabilities in 2014
  Fair value
$’000
Fair value measurements at the end of the reporting period using
Level 1 inputs
$’000
Level 2 inputs
$’000
Level 3 inputs
$’000
Non-financial assets        
Leasehold Improvements 12 062 12 062
Property, plant and equipment 7 227 42 7 185
Total non-financial assets 19 289 42 19 247
Total fair value measurements of assets in the statement of financial position 19 289 42 19 247

Fair value measurements – highest and best use differs from current use for non-financial assets

The highest and best use of all non-financial assets are the same as their current use.

Note 5B: Level 1 and Level 2 Transfers for Recurring Fair Value Measurements

No classes of assets were transferred between Level 1 and Level 2.

The entity’s policy for determining when transfers between levels are deemed to have occurred can be found in Note 1.19.

Note 5C: Valuation Technique and Inputs for Level 2 and Level 3 Fair Value Measurements

Level 2 and 3 fair value measurements – valuation technique and the inputs used for assets and liabilities in 2014
  Category (Level 2 or Level 3) Fair value
$’000
Valuation technique(s)a Inputs used Range (weighted average)b
Non-financial assets          
Leasehold Improvements Level 3 12 062 Depreciated optimised replacement cost Unexpired lease term, ABS indices, Market prices *c
Property, plant and equipment – forklifts, catering equipment and generators Level 2 42 Comparable sales Comparable sales N/A
Property, plant and equipment – others Level 3 7 185 Depreciated optimised replacement cost Useful life, ABS indices, Market prices *c
  1. No change in valuation technique occurred during the period.
  2. Significant unobservable inputs only. Not applicable for assets or liabilities in the Level 2 category.
  3. A range and weighted average for significant unobservable inputs was not available from the valuers when measuring the fair value of level 3 assets. This information will be obtained for the 2014–15 financial statements

The AEC procured valuation services from Rodney Hyman Asset Services Pty Ltd (RHAS) and relied on valuation models provided by the RHAS. The entity tests the valuation model at least once every 12 months. RHAS provided written assurance to the entity that the model developed is in compliance with AASB 13.

The significant unobservable inputs used in the fair value measurement of the AEC’s Leasehold Improvement and Property, Plant and Equipment – Other are useful lives. Useful lives for leasehold improvements are based on the unexpired period of the current leases without any allowance for any options that may be available. Significant increases (decreases) in any of those inputs in isolation would result in a significantly lower (higher) fair value measurement.

Note 5D: Reconciliation for Recurring Level 3 Fair Value Measurements

Recurring Level 3 fair value measurements – reconciliation for assets
  Financial assets 2014
Leasehold Improvements
$’000
Property, plant and equipment – others
$’000
Total
$’000
Opening balance 11 932 5 750 17 682
Total (losses) recognised in net cost of servicesa (3 226) (3 131) (6 357)
Total gains recognised in other comprehensive incomeb 2 869 2 436 5 305
Purchases 487 2 130 2 617
Closing balance 12 062 7 185 19 247
Changes in unrealised gains/(losses) recognised in net cost of services for assets held at the end of the reporting periodc 2 869 2 436 5 305
  1. These (losses) are presented in the Statement of Comprehensive Income under Depreciation and Amortisation and Disposal of Assets.
  2. These gains are presented in the Statement of Comprehensive Income under Changes in asset revaluation surplus.
  3. These unrealised gains are presented in the Statement of Comprehensive Income under Changes in asset revaluation surplus.

The entity’s policy for determining when transfers between levels are deemed to have occurred can be found in Note 1.19.

Note 6: Financial Assets

Note 6A: Cash and Cash Equivalents
  2014 $’000 2013 $’000
Note 6A: Cash and Cash Equivalents    
Cash on hand or on deposit 1 518 1 689
Total cash and cash equivalents 1 518 1 689
Note 6B: Trade and Other Receivables
  2014 $’000 2013 $’000
Note 6B: Trade and Other Receivables    
Good and Services:    
Goods and services – related parties 158 153
Goods and services – external parties 106 1 401
Total receivables for goods and services 264 1 554
Appropriations receivable:    
Programme funding 35 616 11 986
Equity Injections 3 992 1 654
Departmental Capital Budget 6 234 4 922
Total appropriations receivable 45 842 18 562

Note: AEC’s Programme Funding Receviable includes an amount of $24.314m related to activities that the AEC did not undertake in the 2013–14 financial year and $2.181m related to prior year activities that the AEC did not undertake. Equity injections include an amount of $3.989m related to activities that the AEC did not undertake. The Department of Finance has quarantined all of these funds. These amounts will be legally reduced under Appropriation Acts in the 2014–15 financial year.

  2014
$’000
2013
$’000
Other receivables:    
GST receivable from the Australian Taxation Office 632 316
Other – related parties 72 213
Other – external parties 1 398 672
Total other receivables 2 102 1 201
Total trade and other receivables (gross) 48 208 21 317
Less impairment allowance:    
Goods and services 1
Total impairment allowance 1
Total trade and other receivables (net) 48 207 21 317
Receivables are expected to be recovered in:    
No more than 12 months 48 207 21 317
More than 12 months
Total trade and other receivables (net) 48 207 21 317
Receivables are aged as follows:    
Not overdue 48 167 21 257
Overdue by:    
0 to 30 days 13 41
31 to 60 days 8 14
61 to 90 days
More than 90 days 20 5
Total receivables (gross) 48 208 21 317
The impairment allowance is aged as follows:    
Overdue by:    
More than 90 days 1
Total impairment allowance 1

Credit terms for goods and services are within 30 days (2013: 30 days)

Reconciliation of the Impairment Allowance:

Movements in relation to 2014
  Goods and services
$’000
Total
$’000
Opening balance
Amounts written off
Amounts recovered and reversed
Increase/decrease recognised in net cost of services 1 1
Closing balance 1 1
Movements in relation to 2013
  Goods and services
$’000
Total
$’000
Opening balance 1 1
Amounts written off
Amounts recovered and reversed
Increase/decrease recognised in net cost of services (1) (1)
Closing balance

Note 7: Non-Financial Assets

Note 7A: Land and Buildings
  2014 $’000 2013 ’000
Note 7A: Land and Buildings    
Leasehold improvements:    
Work in progress 1 997
Fair value 12 529 10 168
Accumulated depreciation (467) (233)
Total leasehold improvements 12 062 11 932
Total land and buildings 12 062 11 932

No leasehold improvements were expected to be sold or disposed of within the next 12 months.

Note 7B: Property, Plant and Equipment
  2014 $’000 2013 $’000
Note 7B: Property, Plant and Equipment    
Other property, plant and equipment:    
Fair value 7 227 5 796
Accumulated depreciation
Total other property, plant and equipment 7 227 5 796
Total property, plant and equipment 7 227 5 796

Revaluations of non-financial assets

All revaluations were conducted in accordance with the revaluation policy stated at Note 1. In June 2014, an independent valuer from Rodney Hyman Asset Services Pty Ltd conducted a full valuation of all assets held at 30 June 2014.

A revaluation increment of $2 869 318 for leasehold improvements (2013: $537 552) was credited to the asset revaluation surplus by asset class and included in the equity section of the statement of financial position. There was no revaluation increment for provision for restoration (2013: $0). Similarly an increment of $2 449 841 for property, plant and equipment (2013: $1 395 557) was credited to the asset revaluation surplus and included in the equity section of the Statement of Financial Position.

Note 7C: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment
  Leasehold Improvements $’000 Other Property, Plant & Equipment $’000 Total $’000

2014

As at 1 July 2013      
Gross book value 12 165 5 796 17 961
Accumulated depreciation and impairment (233) (233)
Total as at 1 July 2013 11 932 5 796 17 728
Additions      
By purchase 487 2 130 2 617
Revaluations and impairments recognised in other comprehensive income 2 869 2 450 5 319
Depreciation expense (3 226) (3 130) (6 356)
Disposals (19) (19)
Total as at 30 June 2014 12 062 7 227 19 289
Total as at 30 June 2014 represented by:      
Gross book value 12 529 7 227 19 756
Accumulated depreciation and impairment (467) (467)
Total as at 30 June 2014 12 062 7 227 19 289
Note 7C: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment
  Leasehold Improvements $’000 Other Property, Plant & Equipment $’000 Total $’000

2013

As at 1 July 2012      
Gross book value 8 620 3 814 12 434
Accumulated depreciation and impairment
Total as at 1 July 2012 8 620 3 814 12 434
Additions      
By purchase 6 469 2 619 9 088
Revaluations and impairments recognised in other comprehensive income 538 1 396 1 934
Revaluations recognised in the operating result
Depreciation expense (3 670) (1 969) (5 639)
Disposals (25) (64) (89)
Total as at 30 June 2013 11 932 5 796 17 728
Total as at 30 June 2013 represented by:      
Gross book value 12 165 5 796 17 961
Accumulated depreciation and impairment (233) (233)
Total as at 30 June 2013 11 932 5 796 17 728
Note 7D: Intangibles
  2014 $’000 2013 $’000
Note 7D: Intangibles    
Computer software:    
Internally developed – in progress 18 123
Internally developed – in use 47 210 45 575
Purchased 2 029 2 265
Accumulated amortisation (34 844) (32 060)
Total computer software 14 413 15 903
Total intangibles 14 413 15 903

No indicators of impairment were found for intangible assets (2013: $nil)

No intangibles are expected to be sold or disposed of within the next 12 months.

Note 7E: Reconciliation of the Opening and Closing Balances of Intangibles
  Computer software internally developed $’000 Computer software purchased $’000 Total $’000
2014
As at 1 July 2013      
Gross book value 45 698 2 265 47 963
Accumulated amortisation and impairment (30 291) (1 769) (32 060)
Total as at 1 July 2013 15 407 496 15 903
Additions      
By purchase or internally developed 1 530 13 1 543
Amortisation (2 855) (178) (3 033)
Total as at 30 June 2014 14 082 331 14 413
Total as at 30 June 2014 represented by:      
Gross book value 47 228 2 029 49 257
Accumulated amortisation and impairment (33 146) (1 698) (34 844)
Total as at 30 June 2014 14 082 331 14 413
Note 7E: Reconciliation of the Opening and Closing Balances of Intangibles
  Computer software internally developed $’000 Computer software purchased $’000 Total $’000
2013
As at 1 July 2012      
Gross book value 41 207 1 950 43 157
Accumulated amortisation and impairment (27 902) (1 581) (29 483)
Total as at 1 July 2012 13 305 369 13 674
Additions      
By purchase or internally developed 4 736 315 5 051
Amortisation (2 577) (188) (2 765)
Disposals (57) (57)
Total as at 30 June 2013 15 407 496 15 903
Total as at 30 June 2013 represented by:      
Gross book value 45 698 2 265 47 963
Accumulated amortisation and impairment (30 291) (1 769) (32 060)
Total as at 30 June 2013 15 407 496 15 903
Note 7F: Inventories
  2014 $’000 2013 $’000
Note 7F: Inventories    
Inventories held for distribution    
Election equipment at cost (ballot paper and voting equipment) 1 898 3 594
Total inventories 1 898 3 594

During 2013–14, $3 133 961 of inventory held for distribution was recognised as an expense (2012–13: $114 420).

No items of inventory were recognised at fair value less cost to sell.

Note 7G: Other Non-Financial Assets
  2014 $’000 2013 $’000
Note 7G: Other Non-Financial Assets    
Prepayments 1 567 1 653
Total other non-financial assets 1 567 1 653
Total other non-financial assets – are expected to be recovered in:    
No more than 12 months 1 550 1 611
More than 12 months 17 42
Total other non-financial assets 1 567 1 653

No indicators of impairment were found for other non-financial assets (2013: Nil).

Note 8: Payables

Note 8A: Suppliers
  2014 $’000 2013 $’000
Note 8A: Suppliers    
Trade creditors and accruals 7 679 5 728
Total supplier payables 7 679 5 728
Supplier payables expected to be settled within 12 months:    
Related parties 2 939 638
External parties 4 740 5 090
Total 7 679 5 728
Total supplier payables 7 679 5 728

Settlement was usually made within 30 days.

The AEC received $97 127 (2013: $160 751) under the Paid Parental Leave Scheme.

Note 8B: Other Payables
  2014 $’000 2013 $’000
Note 8B: Other Payables    
Salaries and wages 2 202 2 074
Superannuation 323 314
Lease incentives 3 744 4 421
Straight-line leases 582 306
Unearned revenue 798 1 403
Total other payables 7 649 8 518
Total other payables are expected to be settled in:    
No more than 12 months 3 893 4 351
More than 12 months 3 756 4 167
Total other payables 7 649 8 518

Note 9: Provisions

Note 9A: Employee Provisions
  2014 $’000 2013 $’000
Note 9A: Employee Provisions    
Leave 22 253 22 535
Total employee provisions 22 253 22 535
Employee provisions are expected to be settled in:    
No more than 12 months 5 989 5 784
More than 12 months 16 264 16 751
Total employee provisions 22 253 22 535
Note 9B: Other Provisions
  2014 $’000 2013 $’000
Note 9B: Other Provisions    
Provision for restoration obligations 1 577 1 553
Total other provisions 1 577 1 553
Other provisions are expected to be settled in:    
No more than 12 months 378 225
More than 12 months 1 199 1 328
Total other provisions 1 577 1 553
  Provision for restoration
$’000
Total
$’000
Carrying amount 1 July 2013 1 553 1 553
Additional provisions made 30 30
Amounts used (36) (36)
Amounts reversed (4) (4)
Unwinding of discount 34 34
Closing balance 2014 1 577 1 577

The AEC currently has 35 (2013: 35) agreements for the leasing of premises which have provisions requiring the entity to restore the premises to their original condition at the conclusion of the lease. The AEC has made a provision to reflect the present value of this obligation.

Note 10: Cash Flow Reconciliation

Note 10: Cash Flow Reconciliation
  2014 $’000 2013 $’000
Reconciliation of cash and cash equivalents as per the Statement of Financial Position to Cash Flow Statement    
Cash and cash equivalents as per:    
Cash flow statement 1 518 1 689
Statement of financial position 1 518 1 689
Difference
Reconciliation of net cost of services to net cash from operating activities:    
Net cost of services (265 019) (116 392)
Add revenue from Government 276 066 114 257
Adjustments for non-cash items    
Depreciation/amortisation 9 389 8 404
Net write down/(up) of makegood liability 34 (163)
Loss on disposal of assets 19 121
Changes in assets/liabilities    
Decrease/(increase) in lease incentive asset 41 89
(Increase) in net receivables (23 298) (46)
Decrease/(increase) in inventories 1 696 (611)
Decrease in prepayments 86 538
(Decrease) in employee provisions (282) (715)
Increase/(decrease) in supplier payables 1 992 (1 940)
(Decrease) in other payable (869) (732)
Increase in other provisions 28
Net cash from operating activities (117) 2 810

Note 11: Contingent Assets and Liabilities

Note 11: Contingent Assets and Liabilities
  Claims for damages or costs Total
2014
$’000
2013
$’000
2014
$’000
2013
$’000
Contingent assets        
Balance from previous period 90 90
New contingent assets recognised
Assets recognised (90) (90)
Total contingent assets
Net contingent assets

Contingent Liabilities

At 30 June 2014, the AEC had no contingent liabilities (2013: $0).

Quantifiable Contingencies

At 30 June 2014, the AEC had no quantifiable contingencies (2013: $0).

Unquantifiable Contingencies

At 30 June 2014, the AEC had no unquantifiable contingencies (2013: $0).

Significant Remote Contingencies

The AEC has no significant remote contingencies (2013: $0).

Note 12: Senior Executive Remuneration

Note 12A: Senior Executive Remuneration Expenses for the Reporting Perioda
  2014
$
2013
$
Short-term employee benefits:    
Salary 3 177 517 3 160 047
Otherb 187 003 57 467
Total short-term employee benefits 3 364 520 3 217 514
Post-employment benefits:    
Superannuation 659 152 543 824
Total post-employment benefits 659 152 543 824
Other long-term benefits:    
Long-service leave 76 301 75 493
Annual leave accrued 237 380 234 869
Total other long-term benefits 313 681 310 362
Total senior executive remuneration expenses 4 337 353 4 071 700
  1. This note is prepared on an accruals basis.
    Note 12A excludes acting arrangements and part-year service where total remuneration expensed for a senior executive was less than $195 000.
  2. Other includes higher duties, FBT and retention payments.

Note 12B: Average Annual Reportable Remuneration Paid to Substantive Senior Executives During the Reporting Period

Average annual reportable remuneration paid to substantive senior executives in 2014
Average annual reportable remunerationa Substantive Senior Executives
No.
Reportable salaryb
$
Contributed superannuationc
$
Reportable
allowances
d
$
Bonus paide
$
Total
$
Total remuneration (including part-time arrangements):
less than $195 000 7 145 572 17 349 162 921
$195 000 to $224 999 7 186 611 27 047 213 658
$225 000 to $254 999 3 213 264 25 624 238 888
$255 000 to $284 999 1 241 137 30 482 271 619
$285 000 to $314 999 1 266 612 37 658 304 270
$315 000 to $344 999 1 295 394 36 694 332 088
$1 035 000 to $1 064 999g 1 992 222 59 635 1 051 857
Total 21          
Average annual reportable remuneration paid to substantive senior executives in 2013
Average annual reportable remunerationa Substantive Senior Executives
No.
Reportable salaryb
$
Contributed superannuationc
$
Reportable
allowancesd
$
Bonus paide
$
Total
$
Total remuneration (including part-time arrangements):
less than $195 000 6 155 071 20 491 175 562
$195 000 to $224 999 6 177 172 24 414 201 586
$225 000 to $254 999 3 203 502 28 260 168 231 930
$255 000 to $284 999 3 230 996 35 086 266 082
$375 000 to $404 999 1 332 283 44 931 377 214
Total 19          
  1. This table reports substantive senior executives who received remuneration during the reporting period. Each row represents an averaged figure based on headcount for individuals in the remuneration band (i.e. the ‘Total substantive Senior Executives No.’ column).
  2. ‘Reportable salary’ includes the following:
    1. gross payments (less any bonuses paid, which are separated out and disclosed in the ‘bonus paid’ column);
    2. reportable fringe benefits (at the net amount prior to ‘grossing up’ for tax purposes);
    3. exempt foreign employment income; and
    4. reportable employer superannuation contributions.
  3. The ‘contributed superannuation’ amount is the average cost to the entity for the provision of superannuation benefits to substantive senior executives in that reportable remuneration band during the reporting period.
  4. ‘Reportable allowances’ are the average annual allowances paid as per the ‘total allowances’ line on individuals’ payment summaries
  5. ‘Bonus paid’ represents average actual bonuses paid during the reporting period in that reportable remuneration band. From 2010–11 onwards no bonuses have been paid.
  6. Various salary sacrifice arrangements were available to senior executives including superannuation, motor vehicle and expense payment fringe benefits. Salary sacrifice benefits are reported in the ‘reportable salary’ column (refer 2(b)).
  7. The reportable salary for the top paid Substantive Senior Executive includes the payout of leave on resignation.

Note 12C: Other Highly Paid Staff

Average annual reportable remuneration paid to other highly paid staff in 2014
Average annual reportable remunerationa Other highly paid staff
No.
Reportable
salary
b
$
Contributed
superannuation
c
$
Reportable
allowances
d
$
Bonus paide
$
Total
$
Total remuneration (including part-time arrangements):
$255 000 to $284 999 1 255 360 19 626 274 986
Total 1          
Average annual reportable remuneration paid to other highly paid staff in 2013
Average annual reportable remunerationa Other highly paid staff
No.
Reportable
salaryb
$
Contributed
superannuationc
$
Reportable
allowancesd
$
Bonus paide
$
Total
$
Total remuneration (including part– time arrangements):
$195 000 to $224 999
Total          
  1. This table reports staff:
    1. who were employed by the entity during the reporting period;
    2. whose reportable remuneration was $195 000 or more for the reporting period; and
    3. were not required to be disclosed in Table B disclosures.
    4. Each row is an averaged figure based on headcount for individuals in the band.
  2. ‘Reportable salary’ includes the following:
    1. gross payments (less any bonuses paid, which are separated out and disclosed in the ‘bonus paid’ column);
    2. reportable fringe benefits (at the net amount prior to ‘grossing up’ for tax purposes);
    3. exempt foreign employment income; and
    4. reportable employer superannuation contributions.
  3. The ‘contributed superannuation’ amount is the average cost to the entity for the provision of superannuation benefits to other highly paid staff in that reportable remuneration band during the reporting period.
  4. ‘Reportable allowances’ are the average actual allowances paid as per the ‘total allowances’ line on individuals’ payment summaries
  5. ‘Bonus paid’ represents average actual bonuses paid during the reporting period in that reportable remuneration band. From 2010–11 onwards no bonuses have been paid.

Note 13: Remuneration of Auditors

Note 13: Remuneration of Auditors
  2014
$’000
2013
$’000
Financial statement audit services were provided free of charge to the AEC by the Australian National Audit Office (ANAO).    
Fair value of the services received    
Financial statement audit services 94 84
Total 94 84

No other services were provided by the Auditor-General.

Note 14: Financial Instruments

Note 14: Financial Instruments
  2014
$’000
2013
$’000
Note 14A: Categories of Financial Instruments    
Financial Assets    
Loans and receivables:    
Cash and cash equivalents 1 518 1 689
Receivables for goods and services 1 733 2 439
Total financial assets 3 251 4 128
Financial Liabilities    
At amortised cost:    
Trade Creditors 7 679 5 728
Total financial liabilities 7 679 5 728
Note 14B: Net Gains or Losses on Financial Assets    
Loans and receivables    
Impairment of receivables for goods and services (1)
Net gain/(loss) from loans and receivables (1)

Note 14C: Fair Value of Financial Instruments

The carrying amount of financial instruments does not differ from the fair value.

Note 14D: Credit Risk

The AEC’s maximum exposure to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the Statement of Financial Position.

The AEC has no significant exposures to any concentration of credit risk.

The following table illustrates the AEC’s gross exposure to credit risk, excluding any collateral or credit enhancements.

AEC’s gross exposure to credit risk, excluding any collateral or credit enhancements
  2014
$’000
2013
$’000
Financial assets    
Cash and cash equivalents 1 518 1 689
Receivables for goods and services 263 1 554
Other receivables – related and external parties 1 470 885
Total 3 251 4 128
Credit quality of financial assets not past due or individually determined as impaired
  Not past due nor impaired Past due or impaired
2014
$’000
2013
$’000
2014
$’000
2013
$’000
Cash and cash equivalents 1 518 1 689
Receivables for goods and services 1 692 2 379 41 60
Total 3 210 4 068 41 60
Ageing of financial assets that were past due but not impaired for 2014
  0 to 30 days
$’000
31 to 60 days
$’000
61 to 90 days
$’000
90+ days
$’000
Total 
$’000
Receivables for goods and services 13 8 20 41
Total 13 8 20 41
Ageing of financial assets that were past due but not impaired for 2013
  0 to 30 days
$’000
31 to 60 days
$’000
61 to 90 days
$’000
90+ days
$’000
Total 
$’000
Receivables for goods and services 41 14 5 60
Total 41 14 5 60

Note 14E: Liquidity Risk

The AEC’s financial liabilities are payables. The exposure to liquidity risk is based on the notion that the AEC will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to appropriation funding and mechanisms available to the AEC and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations.

Maturities for non-derivative financial liabilities 2014
  Within 1 year
$’000
Total
$’000
Trade Creditors 7 679 7 679
Total 7 679 7 679
Maturities for non-derivative financial liabilities 2013
  Within 1 year
$’000
Total
$’000
Trade Creditors 5 728 5 728
Total 5 728 5 728

The AEC had no derivative financial liabilities in either 2014 or 2013.

Note 14F: Market Risk

The AEC holds basic financial instruments that do not expose the AEC to certain market risks. The AEC is not exposed to ‘Currency risk’, ‘Other price risk’ or ‘Interest rate risk’.

Note 15: Financial Assets Reconciliation

Note 15: Financial Assets Reconciliation
  Notes 2014
$’000
2013
$’000
Financial assets      
Total financial assets as per statement of financial position   49 725 23 006
Less: non-financial instrument components      
Appropriations receivable 6B (45 852) (18 562)
Other receivables 6B (632) (316)
Total non-financial instrument components   (46 474) (18 878)
Total financial assets as per financial instruments note 14A 3 251 4 128

Note 16: Administered – Expenses

Note 16A: Other Expenses
  2014 $’000 2013 $’000
Note 16A: Other Expenses    
Refunds – electoral fines/penalties 27 1
Election public funding 60 957
Total other expenses 60 984 1

Note 17: Administered – Income

Note 17A: Fees and Fines
  2014
$’000
2013
$’000
Own-source revenue    
Non-Taxation Revenue    
Note 17A: Fees and Fines    
Electoral fines/penalties 2 237 10
Candidate deposits 5 19
Other 3
Total fees and fines 2 242 32

Note 18: Administered – Assets and Liabilities

There are no administered assets or liabilities for the AEC.

Note 19: Administered – Cash Flow Reconciliation

Note 19: Administered – Cash Flow Reconciliation
  2014 $’000 2013 $’000
Reconciliation of cash and cash equivalents as per Administered Schedule of Assets and Liabilities to Administered Cash Flow Statement    
Cash and cash equivalents as per:    
Schedule of administered cash flows
Schedule of administered assets and liabilities
Discrepancy
Reconciliation of net cost of services to net cash from/(used by) operating activities:    
Net cost of (contribution) by services 58 742 31
Adjustments for non–cash items
Movements in assets/liabilities
Net cash (from)/used by operating activities 58 742 31

Note 20: Administered – Contingent Assets and Liabilities

There are no administered contingencies, remote or quantifiable, for the AEC.

Note 21: Administered – Financial Instruments

There are no administered financial instruments for the AEC.

Note 22: Appropriations

Note 22A: Annual Appropriations (Recoverable GST exclusive)
  2014 Appropriations Appropriation applied in 2014 (current and prior years) $’000 Variance
$’000
Appropriation Act FMA Act Total appropriation
Annual Appropriationa
$’000
Appropriations reducedb
$’000
AFMc
$’000
Section 30
$’000
Section 31
$’000
Section 32
$’000
Departmental                  
Ordinary annual services 275 365 19 542 294 907 265 847 29 060
Other services                  
Equity 3 992 3 992 1 254 2 738
Total departmental 279 357 19 542 298 899 267 101 31 798
  1. AEC’s Annual Appropriation in the 2013–14 financial year includes supplementation appropriation of $3.795m that related to the 2012–13 financial year. This amount is reflected in the above table. Of this amount $2.181 has been quarantined and will be reduced under Appropriation Acts in the 2014–15 financial year.

    AEC’s Annual Appropriation in the 2013–14 financial year includes an amount of $26.818m related to ordinary annual services and $3.989m related to Equity that has been quarantined and will be reduced under Appropriation Acts in the 2014–15 financial year. This amount is included in the table above.

    Of the amounts quarantined only $0.323m has been applied as a reduction in Revenue from Government and Appropriations Receviable in the financial statements.
  2. Appropriations reduced under Appropriation Acts (Nos. 1, 3, 5) 2013–14: sections 10, 11, 12 and 15 and under Appropriation Acts (Nos. 2, 4, 6) 2013–14: sections 12 13, 14 and 17. Departmental appropriations do not lapse at financial year-end. However, the responsible Minister may decide that part or all of a departmental appropriation is not required and request that the Finance Minister reduce that appropriation. The reduction in the appropriation is effected by the Finance Minister’s determination and is disallowable by Parliament.
  3. Advance to the Finance Minister (AFM) – Appropriation Acts (Nos. 1, 3, 5) 2013–14: section 13 and Appropriation Acts (Nos. 2, 4, 6) 2013–14: section 15.
Note 22A: Annual Appropriations (Recoverable GST exclusive)
  2013 Appropriations Appropriation applied in 2013 (current and prior years)
$’000
Variance
$’000
Appropriation Act FMA Act Total appropriation
Annual Appropriation
$’000
Appropriations reduceda
$’000
AFMb
$’000
Section 30
$’000
Section 31
$’000
Section 32
$’000
Departmental                  
Ordinary annual services 112 091 21 997 134 088 133 305 783
Other services                  
Equity 270 270 3 197 (2 927)
Total departmental 112 361 21 997 134 358 136 502 (2 144)
  1. Appropriations reduced under Appropriation Acts (Nos. 1, 3, 5) 2012–13: sections 10, 11, 12 and 15 and under Appropriation Acts (Nos. 2, 4, 6) 2012–13: sections 12 13, 14 and 17. Departmental appropriations do not lapse at financial year-end. However, the responsible Minister may decide that part or all of a departmental appropriation is not required and request that the Finance Minister reduce that appropriation. The reduction in the appropriation is effected by the Finance Minister’s determination and is disallowable by Parliament. In 2013, there was no reduction in departmental and non-operating departmental appropriations.
  2. Advance to the Finance Minister (AFM) – Appropriation Acts (Nos. 1, 3, 5) 2012–13: section 13 and Appropriation Acts (Nos. 2, 4, 6) 2012–13: section 15.
  3. AEC has recognised in the 2012–13 financial year supplementation appropriation of $3.795m that will be appropriated in the 2013–14 financial year. This amount is not reflected in the above table.
Note 22B: Departmental Capital Budgets (Recoverable GST exclusive)
  2014 Capital Budget Appropriations Capital Budget Appropriations applied in 2014 (current and prior years) Variance
$’000
Appropriation Act FMA Act Total Capital Budget Appropriations
$’000
Payments for non-financial assetsc
$’000
Payments for other purposes
$’000
Total payments
$’000
Annual Capital Budget
$’000
Appropriations reducedb
$’000
Section 32
$’000
Departmental                
Ordinary annual services – Departmental Capital Budgeta 4 181 4 181 2 869 2 869 1 312
  1. Departmental Capital Budgets are appropriated through Appropriation Acts (No. 1, 3, 5). They form part of ordinary annual services, and are not separately identified in the Appropriations Acts. For more information on ordinary annual services appropriations, please see Table A: Annual appropriations.
  2. Appropriations reduced under Appropriation Acts (No. 1, 3, 5) 2013–14: sections 10, 11, 12 and 15 or via a determination by the Finance Minister.
  3. Payments made on non-financial assets include purchases of assets, expenditure on assets which has been capitalised, costs incurred to make good an asset to its original condition, and the capital repayment component of finance leases.
Note 22B: Departmental Capital Budgets (Recoverable GST exclusive)
  2013 Capital Budget Appropriations Capital Budget Appropriations applied in 2013 (current and prior years) Variance
$’000
Appropriation Act FMA Act Total Capital Budget Appropriations
$’000
Payments for non– financial assetsc
$’000
Payments for other purposes
$’000
Total payments
$’000
Annual Capital Budget
$’000
Appropriations reducedb
$’000
Section 32
$’000
Departmental                
Ordinary annual services – Departmental Capital Budgeta 10 629 10 629 8 797 8 797 1 832
  1. Departmental Capital Budgets are appropriated through Appropriation Acts (No. 1, 3, 5). They form part of ordinary annual services, and are not separately identified in the Appropriations Acts. For more information on ordinary annual services appropriations, please see Table A: Annual appropriations.
  2. Appropriations reduced under Appropriation Acts (No. 1, 3, 5) 2012–13: sections 10, 11, 12 and 15 or via a determination by the Finance Minister.
  3. Payments made on non-financial assets include purchases of assets, expenditure on assets which has been capitalised, costs incurred to make good an asset to its original condition, and the capital repayment component of finance leases.
Note 22C: Unspent Annual Appropriations (Recoverable GST exclusive)
Authority 2014
$’000
2013
$’000
Departmental    
Appropriation Act 1 – 2013–14b 35 939
Appropriation Act 1 – 2013–14 – Cash 1 518
Appropriation Act 1 – 2013–14 – Departmental Capital Budget 1 478
Appropriation Act 1 – 2012–13 5 316
Appropriation Act 1 – 2012–13 – Cash 1 689
Appropriation Act 1 – 2012–13 – Departmental Capital Budget 4 756 4 922
Appropriation Act 1 – 2010–11 2 875
Act 2 – Non Operating – Equity Injection – 2013–14a 3 992
Act 2 – Non Operating – Equity Injection – 2012–13 270
Act 2 – Non Operating – Equity Injection – 2011–12 370
Act 2 – Non Operating – Equity Injection – 2010–11 614
Act 2 – Non Operating – Equity Injection – 2009–10 400
Total 47 683 16 456
  1. AEC’s Annual Appropriation in the 2013–14 financial year includes supplementation appropriation of $3.795m that related to the 2012–13 financial year. This amount is reflected in the above table. Of this amount $2.181m has been quarantined and will be reduced under Appropriation Acts in the 2014–15 financial year.
  2. AEC’s Annual Appropriation includes an amount of $26.818m related to ordinary annual services and $3.989m related to Equity that has been quarantined and will be reduced under Appropriation Acts in the 2014–15 financial year. This amount is included in the table above, but has not been recognised in Revenue from Government and Appropriations Receivable in the financial statements.
  3. Of the amounts quarantined only $0.323m has been applied as a reduction in Revenue from Government and Appropriations Receivable in the financial statements.
Note 22D: Special Appropriations (Recoverable GST exclusive)
Authority Type Purpose Appropriation applied
2014
$’000
2013
$’000
Commonwealth Electoral Act 1918 (Administered) Unlimited Amount Election Public Funding 60 957
Financial Management and Accountability Act 1997 – s.28 Refund of Receipts Refund Refund of Non Voter Fines 30
Commonwealth Electoral Act 1918 (Departmental) Unlimited Amount Electoral Roll Review 9 000 9 000
Total     69 987 9 000

Note 23: Special Accounts

Note 23A: Special Accounts (Recoverable GST exclusive)
  Services for Other Entitites and Trust Monies (SOETM)
2014
$’000
2013
$’000
Balance brought forward from previous period    
Increases:    
Other receipts 2 424
Total increases 2 424
Available for payments 2 424
Decreases:    
Special Public Money Payments made 920
Total decreases 920
Total balance carried to the next period 1 504

Appropriation: Financial Management and Accountability Act 1997; section 21.

Establishing Instrument: Financial Management and Accountability Act 1997; section 20.

Purpose: for the expenditure of monies temporarily held in trust or otherwise for the benefit of a person other than the Commonwealth, for example, candidate deposits.

Note 24: Assets Held in Trust

Monetary assets

Financial assets held in trust are also disclosed in Note 23: Services for Other Entities and Trust Moneys (SOETM) Special Account.

Monetary assets
  2014
$’000
2013
$’000
SOETM Special Account – Monetary Asset    
Total amount held at the beginning of the reporting period
Receipts 2 424
Payments:    
Title passed to Australian Government
Returned to original owner (920)
Total amount held at the end of the reporting period 1 504

Non-monetary assets

AEC had no non-monetary assets held in trust in both the current and prior reporting period.

Note 25: Compensation and Debt Relief

Note 25: Compensation and Debt Relief
  2014
$
2013
$

Compensation and Debt Relief – Departmental

No ‘Act of Grace payments’ were expended during the reporting period (2013: No expenses).
No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997
(2013: No waivers).
Three payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period (2013: No payments). 2 891
No ex-gratia payments were provided for during the reporting period (2013: No payments).
No payment was made under Paragraph 3 of Appendix B (Handling Monetary Claims) of the Legal Services Direction 2005, issued under section 55ZF of the Judiciary Act 1903 during the reporting period (2013: No payments).
No payment was made under section 73 (1) of the Public Service Act 1999 as a payment in special circumstances. (2013: 1 payment). 6 672

Compensation and Debt Relief – Administered

No ‘Act of Grace payments’ were expended during the reporting period (2013: No expenses).
No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997 (2013: No waivers).
44 payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period (2013: No payments). 88 000
No ex-gratia payments were provided for during the reporting period (2013: No payments).
No payment was made under Paragraph 3 of Appendix B (Handling Monetary Claims) of the Legal Services Direction 2005, issued under section 55ZF of the Judiciary Act 1903 during the reporting period (2013: No payments).
No payment was made under section 73 (1) of the Public Service Act 1999 as a payment in special circumstances. (2013: No payments).

Note 26: Reporting of Outcomes

In determining the full cost of outputs, the AEC charges direct costs to programmes and allocates overheads between programmes on the basis of full time equivalent staff.

The AEC’s resourcing consumption varies considerably from year to year and between programmes depending on the phase of the electoral cycle.

Note 26A: Net Cost of Outcome Delivery
  Programme 1 Programme 2 Programme 3 Total Outcome 1
2014
$’000
2013
$’000
2014
$’000
2013
$’000
2014
$’000
2013
$’000
2014
$’000
2013
$’000
Departmental                
Expenses 50 641 60 458 211 296 55 424 21 659 19 236 283 596 135 118
Own-source income (12 169) (12 321) (6 326) (6 382) (10) (152) (18 505) (18 855)
Administered                
Expenses 60 984 60 984
Income (2 242) (32) (2 242) (32)
Net cost of outcome delivery 38 472 48 137 263 712 49 010 21 649 19 084 323 833 116 231

Outcome 1 is described in Note 1.1.

The net costs shown above include intra-government costs.

Note 26B: Major Classes of Departmental Expenses, Income, Assets, and Liabilities by Outcome

The AEC has one outcome so these figures appear in the Statement of Comprehensive Income and Statement of Financial Position.

Note 26C: Major Classes of Administered Expenses, Income, Assets, and Liabilities by Outcome

The AEC has one outcome so these figures appear in Note 16: Administered Expenses, Note 17: Administered Income and Note 18: Administered – Assets and Liabilities.

Note 27: Net Cash Appropriation Arrangements

Note 27: Net Cash Appropriation Arrangements
  2014
$’000
2013
$’000
Total comprehensive income (loss) less depreciation/amortisation expenses previously funded through revenue appropriationsa 25 759 8 257
Plus: depreciation/amortisation expenses previously funded through revenue appropriation (9 389) (8 404)
Total comprehensive income/(loss) – as per the Statement of Comprehensive Income 16 370 (147)
  1. From 2010–11, the Government introduced net cash appropriation arrangements, where revenue appropriations for depreciation/amortisation expenses ceased. Entities now receive a separate capital budget provided through equity appropriations. Capital budgets are to be appropriated in the period when cash payments for capital expenditure is required.

AEC’s Revenue from Government includes an amount of $24.314m related to activities that the AEC did not undertake. The Department of Finance has quarantined these funds for a return to government. These amounts will be legally reduced under Appropriation Acts in the 2014–15 financial year.